Press Release

INVESTMENT FUND STATISTICS December 2007 & 2007 Summary

Monday 28 January 2008

INVESTMENT FUND STATISTICSDecember 2007 & 2007 Summary

 

Summary	UK Domiciled	Overseas Domiciled
Funds under Management	£ 468 billion (December 2006 £410 billion)	£18 billion (December 2006 £12.3 billion)
Net retail sales	-£377.4 million (December 2006 £1.7 billion)	£11.6 million (December 2006 £174.7 million)
Net ISA sales	£17 million (December 2006 £106.6 million)	£0.6 million (December 2006 £1.1 million)

UK Domiciled funds

Funds under management 

Investment funds under management of £468 billion in December saw a 1% increase from November and a 14% increase from December 2006¹. ISA funds under management of £54.3 billion, rose 1% from the previous month, and were 6% higher than the previous year.

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^{1 The increase in funds under management is mainly due to the inclusion of additional institutional funds from January 2007. The total FUM for December would have been £ 439.2 billion without these funds, an increase of 7% from December 2006.}   

ISA sales 
Net ISA sales of £17 million in December reversed the outflows of the previous two months, but were down from the £106.6 million seen in December 2006.  The most popular UK domiciled ISA sector in December was UK All Companies, accounting for 25% of gross ISA sales. 

Net sales by asset class 
Net retail sales of equities saw an outflow of £844 million, of which £242 million was from property funds.  Balanced funds were the most popular retail asset class, accounting for inflows of £154  million. Overall net retail sales saw outflows of £377 million.  Institutional holdings of unit trusts and OEICs saw outflows of £481 million. Including institutional sales, the net outflow from property funds was £537 million.

Best selling sector for UK domiciled funds 
Cautious Managed was the most popular net retail sector in December, accounting for inflows of £129.8 million.  The sector with the biggest outflows in December was UK All Companies with net outflows of £260.4 million.

OVERSEAS FUNDS - December 2007

Summary of overseas domiciled funds - FUM and sales 

Overseas domiciled funds under management of £18 billion in December saw a 2% increase from the previous month. Overseas domiciled ISA assets of £349 million, a 4% increase from November.

Net retail sales of overseas domiciled funds in December were £11.6 million and net retail sales of overseas domiciled investment fund ISAs were £0.6 million.

2007 SUMMARY

Summary	UK Domiciled	Overseas Domiciled
Funds under Management	£ 468 billion (2006 £410 billion)	£18 billion (2006 £12.3 billion)
Net retail sales	£9.5 billion (2006 £15.3 billion)	£399.4 million (2006 £131.9 million)
Net ISA sales	£1.9 billion (2006 £2.5 billion)	£22.6 million (December 2006 £10.3 million)

 

UK DOMICILED FUNDS - 2007

Retail funds under management 1998 - 2007

Funds under management by asset type 2007
Overall funds under management increased over the year with falls between May and November reflecting monthly market movements.  ISA funds under management have fluctuated over the year and continue to represent a decreasing proportion of overall funds under management. 

Retail sales
Net retail sales of £9.5 billion in 2007 were lower than the £15.3 billion in 2006, but the second highest after their 2000 peak

Net retail sales by asset type
The most popular asset class in 2007 was equities, accounting for net retail inflows of £5.3 billion.

The most popular sector in 2007 was the Specialist sector with sales of £3.2 billion of which property funds accounted for £2.1 billion. The second best selling sector was Cautious Managed which accounted for £2 billion in sales.

ISA sales
Net ISA sales of £1.9 billion in 2007 were down on previous years, and slightly higher than the 2005 all time low. In net terms, the most popular ISA sector was Cautious Managed with sales of £388.7 million, closely followed by inflows of £371.4 million into the Unclassified sector.

Fund supermarket net ISA sales 2003 - 2007
Fund supermarkets continued to be the dominant distributor of ISAs, representing 43% of gross ISA business in 2007, followed by 30% through sales force/tied agents.

OVERSEAS FUNDS - 2007

Summary of overseas domiciled funds - FUM and sales.
Overseas domiciled funds under management of £18 billion in 2007 saw a 47% increase from 2006. Overseas domiciled funds under management within ISAs of £349 million saw a 52% increase from 2006.

Net retail sales of overseas domiciled funds in 2007 were £399.4 million. Net retail sales of overseas domiciled investment funds within ISAs were £22.6 million in 2007.

Richard Saunders, Chief Executive of the IMA commented:

"The first 10 months of 2007 saw a continuation of the strong performance of the previous year. In November and December however, as the impact of the credit crunch began to be felt, investors significantly re-evaluated their portfolios and the industry experienced its first overall retail outflows in 15 years. The year as a whole was satisfactory for the industry, but the prospect is clearly more uncertain going in to 2008"